Jollibee raises stake in Tim Ho Wan

MANILA, Philippines — Jollibee Foods Corp., the listed Asian food conglomerate, has increased its stake in popular dimsum brand Tim Ho Wan from 60 percent to 85 percent.

Tim Ho Wan is the latest addition to the portfolio of brands now directly operated by the Jollibee Group.

In a disclosure yesterday, JFC said its wholly owned subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) purchased the 25 percent participating interest of Aragon Investments SPC (Aragon) in Titan Dining LP (Titan), a private equity fund and the ultimate holding entity of Tim Ho Wan, for S$36.3 million or roughly $26 million.

JFC grew its stake just two years after investing in Titan. In that agreement, JFC has the option to acquire a substantial ownership in Tim Ho Wan’s master franchise in the Asia Pacific region when the term of the fund ends in seven years, through a purchase mechanism that is provided for in the agreement with Titan.

To prepare for this eventuality, JFC will operate as a franchisee of Tim Ho Wan in Shanghai, People’s Republic of China (PRC).

Last year, Titan’s fund size doubled to S$200 million from S$100 million previously.

Thus, JWPL’s capital commitment to Titan increased to S$120 million from S$45 million.

Last year, the Jollibee Group opened the first-ever Tim Ho Wan restaurant in mainland China in Shanghai, marking the Michelin starred restaurant’s entry into the world’s second largest consumer economy.